True or False: the Chi-Square Test of Independence Requires That

question 21

True/False

True or False: The chi-square test of independence requires that the expected frequency in each
cell to be at least 5.

---

Definitions:

Profitability Index

Profitability Index (PI) is an investment appraisal technique that calculates the ratio between the present value of future cash flows and the initial investment cost, helping to determine the desirability of a project.

Cash Outflows

Money or funds leaving a business, typically for expenses, investments, or other payments.

Investment Projects

Initiatives or plans requiring capital investments aimed at generating future benefits or returns.

Simple Rate

A straightforward percentage or interest rate, typically referring to finance or investment, without compounding over time.